10 Years ago I purchased a coop apt in Westchester, NY. 1 year ago I put the unit up for sale for $20,000 less than I paid. After 400 days (of having to pay for 2 residences) we received our first offer which we accepted. The buyer was pre approved but the bank will not give a loan on the building because of bad financials. We tried to work with other banks and as a result of the Coop not having... [more]
10 Years ago I purchased a coop apt in Westchester, NY. 1 year ago I put the unit up for sale for $20,000 less than I paid. After 400 days (of having to pay for 2 residences) we received our first offer which we accepted. The buyer was pre approved but the bank will not give a loan on the building because of bad financials. We tried to work with other banks and as a result of the Coop not having enough $$ in reserve, no bank will lend on it. We have been paying for an empty apartment for over a year and a half and now won't be able to sell it because buyers can't get a mortgage. I feel like our only recourse is to default on our loan and walk away from the outrageous maintenance we have been paying for the last year and will continue to have to pay. I realize i will loose my good credit but I dont need credit right now and the apartment is costing over $15,000 per year. IS there anyone who thinks this is a bad idea?
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Response by fieldschester
over 10 years ago
Posts: 3525
Member since: Jul 2013
Marion,
a few questions:
1 - What neighborhood in Westchester?
2 - How old are you? What is your familial situation?
3 - Can you give some more numbers around this? How much is the apt listed for? How much is the mortgage? How much is the maintenance? How many apartments in the co-op?
4 - What was/is the co-op approval process like?
5 - How much mortgage was the new purchaser looking to get on the place?
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Response by NWT
over 10 years ago
Posts: 6643
Member since: Sep 2008
You want to do two things: default on your share load and default on your proprietary lease with the co-op.
Tell them both what you're doing, and walk away. They'll sort it out.
The details at the co-op end are spelled out in your proprietary lease.
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Response by NWT
over 10 years ago
Posts: 6643
Member since: Sep 2008
load==loan
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Response by streetsmart
over 10 years ago
Posts: 883
Member since: Apr 2009
Defaulting on your loan is not a good idea. For one thing you may incur a deficiency judgment. What about the other owners?
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Response by streetsmart
over 10 years ago
Posts: 883
Member since: Apr 2009
P.S. are you certain no bank will finance it? I am a mortgage broker. I may have a small lender who may consider financing in the building.
Ellen Silverman
E. S. Funding Co.
esfundingco@ aol.com
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Response by crescent22
over 10 years ago
Posts: 953
Member since: Apr 2008
NWT, no downside to this strategy, right- coop still gives owner proceeds above the mortgage and maint in arrears?
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Response by NWT
over 10 years ago
Posts: 6643
Member since: Sep 2008
The lease-surrender provisions are in the lease itself, but yes, if the co-op or lender finds a buyer then the OP would get any surplus. "Any" is right, as legal fees, maintenance up to the termination date, etc., will eat it right up. I don't know how often lenders go for deficiency judgements on defaulted share loans, but as streetsmart said, it's possible in NYS.
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Response by streetsmart
over 10 years ago
Posts: 883
Member since: Apr 2009
You may even get hit by the IRS for a cancellation of debt.
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Response by crescent22
over 10 years ago
Posts: 953
Member since: Apr 2008
I guess the lack of ctrl on the legal fees would be the problem. Coop wouldnt care if lawyer ran up his fees as long as they got their maint back.
Can't you rent it out? Some boards will allow that rather than have you default.
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Response by pier45
over 10 years ago
Posts: 379
Member since: May 2009
Wouldn't the coop also not care if the board pres's son offers $1 more than the accumulated amount due the coop? I think the OP is better off pushing the price low enough to entice a buyer.
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Marion,
a few questions:
1 - What neighborhood in Westchester?
2 - How old are you? What is your familial situation?
3 - Can you give some more numbers around this? How much is the apt listed for? How much is the mortgage? How much is the maintenance? How many apartments in the co-op?
4 - What was/is the co-op approval process like?
5 - How much mortgage was the new purchaser looking to get on the place?
You want to do two things: default on your share load and default on your proprietary lease with the co-op.
Tell them both what you're doing, and walk away. They'll sort it out.
The details at the co-op end are spelled out in your proprietary lease.
load==loan
Defaulting on your loan is not a good idea. For one thing you may incur a deficiency judgment. What about the other owners?
P.S. are you certain no bank will finance it? I am a mortgage broker. I may have a small lender who may consider financing in the building.
Ellen Silverman
E. S. Funding Co.
esfundingco@ aol.com
NWT, no downside to this strategy, right- coop still gives owner proceeds above the mortgage and maint in arrears?
The lease-surrender provisions are in the lease itself, but yes, if the co-op or lender finds a buyer then the OP would get any surplus. "Any" is right, as legal fees, maintenance up to the termination date, etc., will eat it right up. I don't know how often lenders go for deficiency judgements on defaulted share loans, but as streetsmart said, it's possible in NYS.
You may even get hit by the IRS for a cancellation of debt.
I guess the lack of ctrl on the legal fees would be the problem. Coop wouldnt care if lawyer ran up his fees as long as they got their maint back.
Will Marion ever return? Or is this a typical SE mystery:
http://streeteasy.com/talk/discussion/39442-full-price-offer-no-response
http://streeteasy.com/talk/discussion/33761-the-worst-place-to-live
Can't you rent it out? Some boards will allow that rather than have you default.
Wouldn't the coop also not care if the board pres's son offers $1 more than the accumulated amount due the coop? I think the OP is better off pushing the price low enough to entice a buyer.
It's always better to rent than to own.
Renters can't default, can they?
Marion?
Madam librarian?
Hello Marion?
I see Marion is still at zero posts.
Chaka Kahn?